No images? Click here Welcome back to this week's edition of the Washington Weekly newsletter - bringing you the latest and greatest policy updates from Washington, D.C.Biden Pitches $5.8 Trillion Plan With Record Tax Hike President Joe Biden unveiled a $5.8 trillion budget request designed to appease moderate Democrats on Monday, March 28, 2022, with a proposal that emphasized deficit reduction, additional funding for police and veterans, and flexibility to negotiate new social spending programs. Congress historically sets presidential budgets aside, but they do form a key messaging device. The 2023 budget calls for $1.598 trillion in so-called discretionary spending -- areas that aren’t linked with mandatory programs like Social Security -- with $813 billion for defense-related programs and $769 billion for domestic spending. That marks a 5.7% increase from the omnibus spending bill for the 2022 fiscal year that was signed by Biden earlier this month. The budget would reduce deficit spending by $1 trillion over the coming decade, buoyed by the elimination of pandemic assistance programs. In addition, the White House included measures that would add up to the biggest tax increase in history in dollar terms, helping stabilize deficits relative to the size of the economy. These tax increases include 2.5 trillion in tax hikes on wealthy individuals and large corporations over a decade, which is in addition to the $1.5 trillion in tax hikes included in the House-passed Build Back Better package; a 20% minimum tax on the unrealized capital gains for households worth at least $100 million; and a call to raise the corporate tax rate to 28% from 21%. But the proposal to tax unrealized capital gains ran into opposition from Sen. Joe Manchin (D-W.Va.), likely dooming it just hours after it was sent to Congress. Read more HERE. OSHA Releases Proposed Rule for Illness and Injury Tracking On Monday, March 28, 2022, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) announced it is proposing amendments to its occupational injury and illness recordkeeping regulation, 29 CFR 1904.41. The current regulation requires certain employers to electronically submit injury and illness information – that they are required to keep – to OSHA. The agency uses these reports to identify and respond to emerging hazards and makes aspects of the information publicly available. In addition to reporting their Annual Summary of Work-Related Injuries and Illnesses, the proposed rule would require certain establishments in certain high-hazards industries to electronically submit additional information from their Log of Work-Related Injuries and Illnesses, as well as their Injury and Illness Incident Report. As part of OSHA's mission to protect workers and mitigate workplace hazards, this rule would improve OSHA's ability to use its enforcement and compliance assistance resources to identify workplaces where workers are at high risk. The proposed rule would also advance the department's mission to empower workers by increasing transparency in the workforce. The proposed rule would:
Establishments with 20 or more employees in certain high-hazard industries would continue to be required to electronically submit information from their OSHA Form 300A annual summary to OSHA annually. Comments regarding this proposed rule must be submitted by May 31, 2022. Read the proposed rule HERE. Temporary Allowances for Import Inspection Establishments As FSIS explained in the October 8, 2021, Constituent Update, all imported product under FSIS jurisdiction must be reinspected at an official import inspection establishment before it can enter the United States or before it can be moved to another location. Because of backups at ports related to complications associated with the pandemic, FSIS allowed imported product to be stored at warehouses for a period not to exceed 30 days, until the product can be reinspected at the import establishment. FSIS allowed this flexibility from October 8, 2021, to April 6, 2022. Because these complications continue, FSIS is going to extend this allowance for an additional 6 months, through October 6, 2022. Stated in the earlier Constituent Update, import establishments wishing to participate must submit a request to FSIS inspection program personnel at the import establishment that includes a plan detailing where and how the establishment will maintain control of product stored offsite. The establishment must keep and maintain a log identifying product held offsite. This log must include sufficient detail to identify each certificate and lot including documentation of case counts. Each lot held offsite must be delivered intact to the designated establishment for reinspection within 30 days of customs entry. FSIS will consider distribution of product from incidental storage prior to reinspection to be a prohibited act by the import establishment. In such cases, FSIS will withhold inspection immediately until the import establishment has taken corrective actions and may revoke offsite storage privileges. FSIS expects that import establishments will use this extended time period and continue to take appropriate action to minimize these problems. Senate Passes Ocean Shipping Reform Act of 2022 On Thursday, March 31, 2022, the Senate passed legislation to enhance regulators’ power to oversee ocean shippers and stop carriers from unreasonably refusing U.S. exports. The bipartisan bill (S. 3580), which the chamber passed by voice vote, would update ocean shipping rules. Senators said the measure would ease backlogged ports and help U.S. exporters get their goods abroad. Lawmakers have sought to address exporters’ complaints amid the pandemic that carriers were sending empty boxes back to Asia, instead of carrying U.S. exports. The House has passed its version of the ocean shipping legislation three times in recent months. Although the House and Senate versions have differences, House lawmakers have been pushing for the chambers to get language passed in both. The bills will now move to conference to reconcile the differences, but it is not clear yet whether Congress will conference the standalone bills or whether it will be part of the upcoming negotiations on the China competitiveness package. Virginia Rescinds its COVID-19 Standard but Issues New Guidance Nearly two years after enacting the first-in-the-nation permanent COVID-19 workplace safety and health standard, the Virginia Safety and Health Codes Board (the “Board”) has voted to rescind its COVID-19 standard. The revocation became effective on March 23, 2022. Following his inauguration in January 2022, Virginia Governor Glenn Youngkin made withdrawal of the COVID-19 standard a priority. Pursuant to Governor Youngkin’s January 15, 2022 executive order, the Board met in February 2022 and accepted the Department of Labor & Industry’s recommendation that COVID-19 no longer posed a “grave danger” to workers and, therefore, the COVID-19 standard was no longer needed to keep workers safe. After a 30-day notice and comment period, the Board voted to rescind the COVID-19 standard on March 21, 2022. The revocation became effective when Governor Youngkin agreed to the revocation on March 23, 2022. What does this mean for employers? Despite this significant development, the Virginia Occupational Safety & Health Administration (VOSH) can continue to inspect and cite employers for COVID-19-related safety concerns under existing regulations. These include requirements related to respiratory protection, sanitation, and personal protective equipment. In particular, Virginia employers should familiarize themselves with the General Duty Clause, which allows VOSH to cite employers for failing to provide a place of employment “free from recognized hazards that are causing or are likely to cause death or serious physical harm.” VOSH has also issued Guidance for Employers to Mitigate the Risk of COVID-19 to Workers, which encourages employers to continue taking certain steps to protect employees from the virus. The Guidance took effect on March 23, 2022. Read more HERE. Biden’s Firing of Trump Labor Board Lawyer Gets April Court Date An appellate court panel with a Republican-appointed majority will hear oral argument April 7 over President Joe Biden’s unprecedented Inauguration Day firing of the federal labor board’s top lawyer during the Trump administration. U.S. Circuit Judges Edith Brown Clement and Jennifer Walker Elrod, who were nominated by George W. Bush, will be joined by Clinton appointee Judge Carl Stewart on the U.S. Court of Appeals for the Fifth Circuit panel that will hear the case. Business software firm Exela Enterprise Solutions Inc. has challenged Biden’s legal authority to remove former National Labor Relations Board General Counsel Peter Robb. The company contends that the unfair labor practice complaint issued against it by Robb’s replacement was legally invalid because of the allegedly unlawful termination. The case gives the Fifth Circuit the opportunity to issue the first court ruling that directly addresses the legality of Robb’s ouster, which has significant long-term implications for the NLRB’s independence from the White House. But its near-term impact is less clear. A ruling that disapproves of Biden’s firing of Robb could delegitimize the work of Robb’s immediate successor, who served on an interim basis for six months. But current General Counsel Jennifer Abruzzo took administrative steps after her Senate confirmation that may safeguard the work of the general counsel’s office in interim period after Robb’s ouster. If you have not yet participated in our grassroots campaigns, but would like to take action to oppose the PRO Act or oppose the harmful tax hikes in the American Job’s Plan, click the Take Action tab above now.
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